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Financial watchdog sets deadline for claiming back mis-sold Payment Protection Insurance.
For the last few years people who were mis-sold Payment Protection Insurance (PPI) have been able to try to claim the money back. However, this state of affairs won’t last forever as the Financial Conduct Authority (FCA), has now put a deadline on how long people have to look into this. If you want to seek compensation for mis-sold PPI, you’ll have to do so before the 29th August 2019.
Putting an end to the scandal
Millions of people were mis-sold this insurance, either because they didn’t know they had it or because it wasn’t suitable for them to begin with. The insurance is designed to cover your repayments should something happen which means that you can’t make them anymore. It was often attached to things like credit cards, loans, store-cards, catalogues, hire purchase and mortgages. Millions of people have already claimed their money back and banks have had to put aside £40bn to cover these pay-outs.
The FCA has decided to set a deadline in an attempt to draw a line under the scandal. It will also run a two-year campaign to raise awareness of the issue and the deadline, so that people have enough time to put a claim in.
There’s also been a high court ruling which states that ‘mis-selling’ now refers to cases where the insurance provider earned a high level of commission from your PPI and this wasn’t made clear to you. This ruling means that there will be lots more people who now qualify for a refund.
I knew I had PPI
If you know you had PPI, it’s worth looking into the matter to see whether it was mis-sold. It’s possible to do this yourself by contacting your creditors or you can use a third party claims management company. Another company will handle the whole process for you but you need to make sure that you understand how they work and charge their fees before you agree to anything.
I don’t know whether I had PPI
If you don’t know whether you had PPI attached to your accounts, try looking through some old statements, if you still have any. You can also contact your creditors directly and ask them, or you can issue something called a Data Subject Access Request (DSAR). This is when you pay for all the information a company holds on you. Companies are only allowed to charge up to £10 to send you this information.
PPI claims and debt
If you owe money to the same company that you’ve claimed back from, they have what’s known as the right to offset. This means that they will technically refund you the money but will use it towards what you owe them rather than sending it to you. If you’re struggling with your debt repayments it’s a good idea to check this as well as get professional debt advice, as a refund might really help you bring the balance of your debts down.
What if I’m rejected?
It’s possible that your claim for mis-sold PPI will be rejected. If this happens and you’re unhappy with the way your complaint was handled, you can take the matter further by referring your complaint to the Financial Ombudsman Service (FOS).
by Christine WalshBack to blog home